Flanders is the northern region of Belgium, known for its ports, medieval towns and art cities. In recent years, the Flanders government has implemented a series of policies to improve the investment environment and attract foreign investment. This article will review the latest developments in Flanders investment and trade policies.
Tax incentives introduced to boost R&D investment
The Flanders government has introduced new tax incentives like exemption from withholding taxes on income from patents to boost R&D spending and innovation. Companies can deduct 80% of qualifying R&D expenditures from the taxable income. The incentives make Flanders more attractive for technology and innovation companies.
Strategic transformation plan to move up production value chain
Flanders has unveiled a strategic transformation plan ‘Vision 2050’ to move the regional economy up the production value chain. It aims to boost productivity through digitalization, sustainability, human capital development and improved business environment. The plan will likely increase FDI in advanced manufacturing and high value-added sectors.
Free trade agreements expanded to boost exports
As an open economy, Flanders relies heavily on external trade. It has been actively expanding free trade agreements with countries outside the EU to reduce tariffs and boost exports. Recent FTAs include deals with Singapore, Vietnam and Mexico. More agreements are being negotiated with Indonesia, Malaysia and Thailand.
Investment support expanded for SMEs
SMEs are the backbone of Flanders economy, accounting for 99.5% of all companies. The government has expanded investment support schemes like low-interest loans, export credits and preferential tax treatment for SMEs. This will likely boost entrepreneurship, innovation and growth among SMEs.
In conclusion, Flanders has implemented several policy initiatives like R&D incentives, strategic industry plans, trade agreements and SME support to boost investment. These measures are improving the region’s investment environment and competitiveness.